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Pao is a town composed of a large group of moving wagons, which roams the Pao Prairie southwest of Uranbatol. They're a neutral town, allowing heroes such as the Shining Force in as well as high-ranking members of the Runefaust army such as General Elliotte.

Pao raises a special breed of sheep, which may have given the town its name with their distinctive bleat, a lengthy "Paoooo!". Many merchants reside in the city, selling necessities such as healing salves and cures, as well as surprisingly fine weaponry given their nature as a roaming farm community. Many warriors can be found in and around Pao, including the two centaurs Earnest and Vankar, Kokichi the inventor, Guntz the Steam Knight, and Jogurt the Yogurt. Within the city one can find a traveling entrepreneur who can also aid the Shining Force in hatching the mysterious Domingo Egg.

Before the battle with Elliotte of Runefaust, Pao makes sure that their visitors are well off before moving their city to allow Max and Elliotte to wage war. Once Elliotte has fallen, the roaming city closes in once more to offer their services to the Shining Force.

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